An Activation Program as a Stick to Job Finding

Abstract:     
In an experimental setting some Danish unemployed workers were assigned to an activation program whereas others were not. The unemployed who were assigned to the activation program found a job more quickly. We show that the activation effect increases with the distance between the place of residence of the unemployed worker and the place where the activation took place. We also find that the quality of the post‐unemployment jobs was not affected by the activation program. Both findings confirm that the activation program mainly worked because it was compulsory and the unemployed did not like it. The activation program worked as a stick to job finding.

Number of Pages in PDF File: 15

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